Ripple, is the new crypto buzzword so all new money entering the crypto space flocks to it, while behind the scenes smart money controls its price movement.
I do applaud anyone new to the crypto space for jumping in because it’s not an easy thing to do. For those ones, Ripple seems like the obvious choice because it ‘appears’ to be a cheap buy when compared to that of Bitcoin or Ethereum. Even though you’ve done a very difficult but smart thing, do you really understand what you bought and why? See, buying into anything without a sound basis for doing so is never a good idea.
This is not to say Ripple is a bad project and will not go up more in price. Admittedly, many with little understanding of its technology have probably seen some very good gains. Still, there’s a much larger issue that an investor needs to consider. When someone buys into a coin without understanding they rob themselves of something, they rob themselves of true conviction. Why does this matter? It matters because buying and hodling without conviction can cause investors to miss out on the bigger gains or even worse, to lose money. See, where there’s no understanding there can be no true conviction. But why is true conviction so important?
Conviction is what makes you hodl something as it’s price is falling or can move you to sell something when it’s no longer worth hodling. Too, understanding how a coin works and why it's worth investing in allows you to do something short-term traders cannot. It allows you to put the focus on where it needs to be. It teaches one to focus on the coin and not the money. Anyone that’s been in this game for a long time can tell you that if you focus on the money you will eventually lose.
Case in point, people who bought into Ripple back when it was trading at .002 cents and actually understood the technology and value of what they were buying were able to hodl with conviction. Over the course of that year, Ripple had huge price swings, even sitting without any gains for months at a time. Because these investors had a real understanding of what they bought, true conviction, they did not sell and are now multi-millionaires. During that same time there was another group buying Ripple only they bought because it was the “hot buy” of the week. Though they too made money, most sold once the price doubled or tripled. The main difference between these two groups lies with their conviction. The second group of investors had no understanding therefore no true conviction to hodl through FUD, inactivity and wild price swings.
Remember there’s no such thing as “easy money”. If you want to make real gains in this space then you have to understand enough about what you’re buying in order to focus on the coin and not the price. If you do this, then you will hodl or sell when the time is right.